Diamond Offshore Drilling, a deepwater drilling contractor, on Monday posted a net loss of $245 million for the fourth quarter 2015, compared to net income of $99 million in the fourth quarter of 2014.
Results for the quarter included a non-cash charge of $499 million associated with the impairment of nine drilling units, which resulted in an after-tax charge of $2.68 per share.
Revenues in the fourth quarter of 2015 were $556 million, compared to revenues of $675 million in the fourth quarter of 2014.
Diamond Offshore also announced that its Board of Directors has discontinued the quarterly cash dividend of $0.125 per share, which will preserve an additional $69 million on an annual basis.
“Given the severe and prolonged downturn in industry fundamentals, we believe it is prudent to bolster our already strong balance sheet,” said Marc Edwards, President and Chief Executive Officer.
“By conserving additional cash, we will have increased flexibility to manage the company through difficult market conditions and position ourselves for the eventual recovery in offshore drilling.”